1.

EXECUTIVE SUMMARY

Service sector is one of the major contributor of country’s growth, grew by 7.9
percent in 2004-05 aided by remarkable growth in finance and banking sector
(21.8%), wholesale and retail trade (12.0%); and a modest growth in transport and
communication (5.6%). The per capita income in dollars has grown at an average
rate of 13.5 percent per annum during the last three years rising from $ 579 in 2002-
03 to $ 657 in 2003-04 and further to $ 736 in 2004-05.

RYK IT Solutions is a project of IT based industry in Pakistan with a proposed market

from Multan to Rahim Yar Khan. Due to the center place between Lahore and
Karachi, it can be a tricky advantage to cover up the area in between.

Rahim yar khan is an industrial city with too many flour mills, oil mills, ginning and
cotton factories, even Fertilizer companies are here. It is a potential market for the IT
based solutions as currently companies are dependent on the solution providers from
Lahore or Karachi.

IT Solution provider is basically an idea to provide the client product of his own
requirement. In computer terminology we call it Customized Software. Which enable
the user to perform the functions according to his own environment and
2. INTRODUCTION
Due to the strong potential and rapid growth of the IT sector, Pakistani Govt. has
recognized the need and necessity to promote the industry in all the ways, locally
and export. Government took some very rational step in the promotion of IT sector
especially exemption of tax up to 2016. Government gives incentives to the IT
education as well as software houses. No tax charge on export.

Pakistan’s economic recovery has gained further traction during the fiscal year 2004-
05. The exceptionally strong growth was strengthened by accommodative
macroeconomic policies, growing domestic demand, renewed confidence of private
sector, fiscal discipline and competitive exchange rates. During the year 2004-2005
Pakistan’s economy extended in all three major components namely, agriculture,
manufacturing and services. The Real GDP grew by 8.4 percent in 2004-05 as
against 6.4 percent last year and surpassed the target (6.6%) for the year by a wide
margin. The growth in year 2004-2005 is supported by a healthy performance in
large-scale manufacturing (15.4%), impressive recovery in agriculture (7.5%) and a
strong growth in services sector (7.9%).

Service sector is one of the major contributor of country’s growth, grew by 7.9
percent in 2004-05 aided by remarkable growth in finance and banking sector
(21.8%), wholesale and retail trade (12.0%); and a modest growth in transport and
communication (5.6%). The per capita income in dollars has grown at an average
rate of 13.5 percent per annum during the last three years rising from $ 579 in 2002-
03 to $ 657 in 2003-04 and further to $ 736 in 2004-05.

Exports were targeted to grow by 11.3 percent in 2004-05 rising from $12.3 billion
last year to $13.7 billion this year, thereby registering an increase of $1.3 billion in
absolute terms.
One-half of the net increase in exports amounting to $651 million has come from the
non- traditional exports items, followed by 27 percent from other manufactures and
13.4 percent from primary commodities exports.

On a monthly basis, exports increased by 35 percent to a provisional $1.5 billion in

September 2005 from $1.1 billion during the same month last year. The unexpected
growth was because the government has asked exporters to dispose off all the duty-
paid stocks before 30th September.

In service sector export relating to IT and IT enabled services (ITeS) during 2004-
2005 accounted for US$ 48.50 million, which is transacted through the State Bank of
Pakistan.
Whereas the export target for current fiscal year that is 2005-2006 are made for US $
72.00 million.

“Trends show that economies where services contribute over 60 percent to the GDP
enjoy a high per capita income of over $ 20,000. In the US, services sector
contribute 77 per cent to the GDP compared to agriculture, which though immense
contribute just 2 per cent while manufacturing and others contribute the rest of 21 per
cent.”
 3. INDUSTRY ANALYSIS
Information Technology (IT) is revolutionizing the way, in which we work in evolving
business climate. In a short period of three decades, computer science has
developed from branch of electronics to one of the largest engineering disciplines
itself. The reason for the rapid growth in the demand for software development is
lead by the widespread use of computers in everyday life, evolution of high-powered
general-purpose computers and low cost of maintaining, debugging of software
products. The potential in the field of software development is still growing worldwide.

Pakistan is rich in human resource, which constitutes the foundation for any major IT
initiative. The technology has emerged as fastest growing sector in Pakistan. During
last 10 years, Pakistan has been developing human capital and infrastructure to cope
with rapidly advancing IT world. The Government is fully aware of IT being the driving
force in the new millennium. Presently, IT industry is in take off stage and catching up
with regional and global industry. Pakistan is also sharing internationally in IT.
Pakistan is in best position to take on the challenges in the global market. IT Sector
in Pakistan can be categorized in three sub sectors:
 Software Industry
 Hardware Industry
 Communication and Service Industry

3.1 Software Industry

Pakistan’s software industry widely seen as “great enabler” that provides an
opportunity to play a greater economic role in the fast globalizing world. According to
conservative estimates, there are about 350-500 software houses working local and
export market in areas of Database management, Internet applications, CAD/CAM
management system etc.

A detail survey of Pakistan software market based on leading 60 software houses

representing the software market was taken. It shows that there are over 4,000
technical and professional employees with an average of 66 employees in an
organization. Out of these software houses 32% of the software companies reporting
annual revenues of more than a million dollar with some reporting more then $5M,
another 36% between $200K and $1M, and the rest 32% less than $200K. On the
whole these companies had experienced an employment growth of about 27.5% and
a revenue growth of 37.4 % over last year.

These companies derive their revenues from export and domestic markets in a ratio
of 60:40.
On the exports side, they derive 22.5% revenues from products and 38.5% revenues
from services. The majority of the product-exports are “customized” rather than
“shrink-wrapped” products. On the domestic side, however, the ratios are somewhat
reversed with products and services contributing 23% and 16.5% respectively. The
industry is serving the private sector markets with around 85% of the total sales
going to private sector (local and foreign combined) and the rest going to public
sector, equally divided between domestic and foreign.

Currently a few software companies have either ISO 9000 or CMM certifications most
of the companies has dedicated quality assurance team and this number is planned
to increase.
3.2 STATISTICS OF THE PAKISTANI IT INDUSTRY

Total number of IT companies registered with PSEB 1595

553 Karachi
440 Islamabad/Rawalpindi
Number of substantial IT companies region-wise breakup
507 Lahore
095 Others
Total number of foreign IT and telecommunication companies
60
working in Pakistan
US$ 2.8 billion (WTO-
Total industry size
prescribed formula)
US$ 1.6 billion (WTO-
IT and IT-enabled services exports
prescribed formula)
Percent growth in exports over the last one year 34%
Number of IT graduates produced per year Approximately 20,000
Export targets for the current fiscal year 2007-2008 US$ 240 million
Number of universities offering IT/CS programs 110
Number of IT professionals engaged in export-oriented
More than 15,000
activities (software development/call centers etc.)
Total number of IT professionals employed in Pakistan 110,000
Total IT spending in the fiscal year 2005-2006 US$ 1.4 billion
Nine IT Parks covering an area
Total space utilized in IT & Software Technology Parks
of 687,285 sq ft
3.3 PAKISTAN'S IT EXPORTS
The State Bank of Pakistan in its statement for the year 2008-09 reports the export
figures of software and IT-enabled services to be US$ 201 million which shows a
consistent annual growth. State Bank of Pakistan adopted BPM 5 reporting system to
report the IT exports revenue, which restricted the export figures to US$ 201 million
only in 2008-09. In India, the Reserve Bank of India follows the BPM 6 (also called
MSITS) Reporting System, which raises its exports to billions of US dollars. BPM 6
includes sales to multinationals, earning of overseas offices & salaries of non-
immigrant overseas workers to export revenue. Using the MSITS Reporting System,
Pakistan IT Industry exports are estimated at US$ 1.4billion while the industry size is
estimated at US$ 2.8 billion.

State Bank Reporting Estimated Total IT Industry Estimated Total IT

Earnings Export Revenue Industry Size
US $ 169m US $ 1.4b US $ 2.8b

The World Trade Organization (WTO) lists Mode 3, revenue generated by

commercial offices overseas, and Mode 4, compensation received by temporary
workers who have traveled abroad, as export revenue streams which must be
included in trade revenue calculation. There is also strong evidence to suggest that
other countries, such as India, in fact employ global services export figures when
reporting or estimating revenue.

Pakistan offers various competitive advantages over other outsourcing destinations,

such as high quality software development, swift and easy establishment of
business, lowest cost basis and emerging and state-of-the-art telecommunication
and IT infrastructure. Experts estimate an average annual growth of 33% in the
sector. This will result in the total IT export revenue crossing US$ 10 billion in the
next five years.
Pakistan’s First Company opened its office in Lahore in 1976 with the name of
Systems Pvt. Ltd. Over the last three decades, the industry has grown from zero to
an approximate size of well-over a hundred million dollars and employs thousands of
professionals. World wide there are 4-tired taxonomies on which tired-1 countries
having more then a billion-dollars of export revenues, and the industry maturity of
more then 15 years. Tired-2 countries have export revenues of more then $200
million and 10 years of industry maturity. Tired-3 countries have more then $25
million in exports revenue and over 5 years of industry maturity. All others aspirants
that do not make the cut fall in the tier-4 of the taxonomy.
Currently Pakistan is viewed as a tier-3 country in a widely quoted taxonomy of
software exporting nations. In global pecking order of software exporting nations
Russia and China are tier-2 nations and India is a tier-1, whose ambition and
progress is toward becoming a “mini (software) superpower.

Due to liberalize IT Policy software industry in Pakistan has developed a lot, a

mushroom growth of Software houses have been registered in IT Sector. Information
centers at IT parks and Business Advisory Councils are providing business advice,
suggestions and recommendations to the software companies to improve their
business and attract foreign investment.

3.4. EMERGING OPPORTUNITIES

3.4.1 Animation
One of the truly emerging areas in the context of software i.e. gaming has only begun
to gain significance in Pakistan over the last few years. Animation is not just about
making interesting clips using software such as Macromedia Flash and 3D Studio
Max; rather, its complexities can involve the improvement of viewing capabilities of a
website, utilization in games where movie clips are concerned, or even in
advertisements. A number of Pakistani IT companies are successfully making use of
animation in a variety of possible dimensions. An example of such is the
advertisement campaign for 7UP based on the Fido Dido character, which makes
major use of animation.

3.4.2 BPO
Business process outsourcing is an emerging concept that gives numerous cost
advantages over the conventional in-house development. Already, many of the
fortune 500 companies have established their offshore development centers in Asia
to reduce their cost and sky-rocket the profit. The BPO industry is growing rapidly in
Pakistan, with exports up by 45 percent in the fiscal year 2003-4 alone.

Pakistan has a large untapped labor pool of English-proficient graduates willing to

work at wages 60% below their US counterparts. Furthermore, consolidated
operating costs are estimated roughly 30% lower in Pakistan as compared to India or
Philippines, two of Asia’s major BPO contenders. The Government has provided
numerous incentives and is willing to invest heavily in the infrastructure required to
jumpstart growth in the BPO sector. Pakistan has one of the fastest growing cellular
industries in the world. This, along with the fast-growing Karachi Stock Exchange,
has put the country in the spotlight of corporate managers worldwide. This positive
tone has been seconded by a Harvard Business School analysis, entitled "Business
Process Outsourcing (BPO) opportunities in Pakistan". The report touts 30 percent
savings in costs in Pakistan as opposed to India, along with infrastructure
advantages such as high-speed connectivity in all the major cities at competitive
rates.
3.4.3 ERP
Enterprise Resource Planning (ERP) is perhaps one of the toughest and most
demanding software solutions to provide to any client, involving the complete
automation of the customer’s company processes. ERP comes in two basic forms:
customized ERP (software made as per the demands and needs of the client) or
standard ERP (a solution such as SAP that can be bought ‘off the shelf’ to be
implemented).

A number of leading IT firms in Pakistan, such as KalSoft (Pvt.) Ltd. in Karachi, are
providing ERP solutions and enabling the recognition of Pakistan as an ERP solution
provider.

Pakistan's Small and Medium Enterprises (SMEs) sector is currently operating at a

disadvantage. This is primarily because a majority of the manufacturing and planning
processes are either not automated, or, if automated, are not being utilized to their
fullest potential. In order to close this gap, PSEB's ‘Automation of Domestic Industry
on Open Source Systems’ project is underway for developing complete ERP
solutions to automate the processes and procedures for the SMEs in HR & Payroll,
Finance, Inventory, Production and Sales in those sectors of the economy which
have the highest export potential. The ERP solutions are being developed using
open source software code, allowing for further enhancements to be made to the
applications as per the needs of the units. The project has collaborated with software
consulting companies with expertise in developing/implementing ERP solutions for
the industry. These companies include NetSol and ITIM Associates along with
Acrologix. To date, two solutions have been deployed and are in the testing phase.

3.4.4 Gaming
Computer games are now a huge market with firms such as Electronic Arts and
Capcom investing billions of dollars into the industry, and earning similar amounts
through the widespread fame and sales of hits such as FIFA 2005, the Prince of
Persia trilogies, Halo and Counter Strike etc. Game development is emerging in
Pakistan’s IT Industry as well with some serious work being done in the field
indicating progress. One such example is Commando 4, Pakistan’s first ever 3D
animation game developed by MicroPoint.

Another major player in Pakistan’s Gaming Industry is Soft flux which was founded in
January 2005. The company targets the exploding mobile gaming industry. In July
2005, Micromiles released Cap Snap, a mobile game for Nokia and Siemens
mobiles, a successful launch which was followed by the development of a website for
mobile games (gameknock.com).

3.5 PROSPECTS, INCENTIVES AND POTENTIAL OF INDUSTRY

The ability of Pakistan to produce quality software is based on our abundant pool of
IT professionals. Pakistan is producing about 5,500 IT graduates annually but there
is need to utilize their potential and facilitate their innovations. The online services
with unmatched security and superior customer satisfaction are required to enhance
market and open new horizon for the sector. More opportunities are being open in
software markets around the world in USA, UK and the rest of Europe, South Africa,
Japan and Australia. A vast potential exist for the local software industry to become
affordable force in the global arena. The government is taking all possible measures
to spur activities in the IT sector and the framework is now more conductive then
ever before for investment in the sector. The strengthening factors, which support the
feasible software house, are as follows:

3.5.1 Internet

Pakistan at the time of its inception in 1947 owned a meager telecom base with just
7000 telephone lines. Telecom service was meant just to meet the needs of country
administration.
The measures taken to promote Internet and software are as follows:
1. 20-50% reduction on the leased lines for ISPs, and software exporters.
2. Concessions to Schools, universities & institutions for Internet usage.
3. Majors cities of country are connected with fiber optic/digital cross connect
system.
4. Segregation of telephone and internet traffic to bring internet away from time
metering.
5. Second high capacity fiber optic link commissioned in 1998 (catering 20 new
cities).
6. Currently about 100 licenses stand issued out of them 50 are operating the
service.
7. Custom duty on the telecom & Internet equipment reduced
8. Waiver granted from 25% CED on leased lines given to license ISPs &
Software
9. Exporters.
10. In year 2004 total 1612 cities including 1091 of Punjab, 202 of Sindh, 209 of
N.W.F.P and 110 of Balochistan were connected which now reached at 1900.

3.5.2 E-Commerce
The present government in Pakistan has also recognized the importance of e-
commerce and finally getting the attention, which it rightly deserves. Electronic
Commerce enhances trade efficiencies by eliminating the delays and cutting the
documentation costs by allowing trade partners to exchange transaction data
digitally. Though e-commerce is already taking place in Pakistan, and its level is the
lowest in the region.

3.5.3 Incentives

The Government of Pakistan has provided several incentives to investors for

promoting the IT industry in the country. The establishment of a reliable IT
infrastructure and the provision of an incentives package are instrumental in the
development of the local IT industry. Other benefits provided to the IT companies are
in the form of tax holidays for 15 years and 100% foreign equity ownership. Because
of these incentives, an increasing number of foreign IT companies have chosen
Pakistan for their outsourcing operations. Some of the areas in which the
Government is facilitating the private sector companies include:

 Information technology parks with low rents, fiber optic connectivity, libraries
and conference rooms.
 Provision of funds for software companies to get ISO-9000 and CMM level
certifications.
 Foreign investors allowed 100% ownership of equity in "IT/ITeS companies"
Tax exemption for IT companies till 2016.
 100% repatriation of profits allowed to IT companies.
 5% custom duties on import of IT-related equipment.
  Seven years' tax holiday for Venture Capital funds.
 The rate of depreciation on computer equipment is 30%.
 The State Bank of Pakistan (SBP) has allowed the opening of Internet
Merchant accounts by banks.
 Instant, reliable and high-speed connectivity available.
 Over 85% of telecommunications infrastructure is on fiber optic cables.
 Internet access is available in over 1900 cities/towns across Pakistan.
 First country in region to establish DWDM telecommunications infrastructure.
 Several cellular companies are using digital transmission (GSM and TDMA).
 The cost of 2 Mbps connection has been lowered to $2000/month.
 Redundant backup connectivity is available through PTCL for call centers.

3.6 SUCCESS STRATEGY

Following factors are the key in making the project viable and profitable:
 In IT sector the most recent development and make new products with new
and different concept make this project successful.
 Innovations and ease for clients
 Research oriented products with low prices and high quality Employee
friendly management practices (e.g. flexibility, stock ownership, profit –
sharing etc.)

3.7 Weakness

The major weaknesses in this field are:

 Inability of Pakistani firms to tap and penetrate lucrative foreign markets with
international standard at competitive prices
 The lack of coherence and co-operation amongst the exporters and the
government due to which the problems cannot be effectively addressed and
tackled collectively.
 The hunger of capable investors to come in fast maturing market of
outsourcing and off-shoring services
 Lack of awareness in the government administration, bureaucratic hurdles
and lack of political will budgetary constraints in government departments.
 Lack of cyber law’s implementation.
 Poor infrastructure facilities such as irregular power supply.

3.8 Threats

The threats identified to the IT industry are as follows:

 Serious professionalism and institutionalization deficit including degradation
of education standards.
 Continued technological backwardness as a result of the refusal of major
international IT players to share technology.
 Increased use of imported software because of product dumping by
international players.
 Massive brain drain due to underpaid IT professionals. There are serious
shortage of experienced programmers and IT professionals which are
necessary for the latest technologies.
 4. DESCRIPTION OF VENTURE
The project has concept of Quality software development house with corporate
presence in Rahim Yar Khan, Pakistan and Target market from Bahawalpur to
Sukkur to utilize the cutting edge technology and offer full range of business
application solutions for the corporate, financial and industrial sectors. The Project's
strategic vision will be providing the clients with quality systems to stimulate their
growth in the existing competitive markets.
Three important aspects are being considered while developing the project:

1. Robust, and extensible architecture and design

2. Good software quality
3. On-time delivery

The planning to achieve these objectives required:

 Employing a highly professional and experienced staff in all aspects – project
management, architecture, design, development and Quality Assurance
 Ensuring continuous personal and professional growth through on-going
training
 Having a well-developed organization structure, and well-defined
responsibilities
 within the company in order to ensure good teamwork, coordination, and
timely product delivery
 Providing good customer support and services

4.1 PRODUCTS / SERVICES

Our major emphasis will be on providing these comprehensive services to our clients.

4.1.1 Consultancy
The first step would be providing consultancy regarding the software problems of the
client. And perform a customer specification analysis, in which the core requirements
of the system will be identified and comprehensive functional specifications for the
software that need to be developed to ensure the solution of customer’s problem.

4.1.2 Demonstration
The prototype or demonstration version of the software will be prepared to give the
customer an idea how exactly the system will work for them. Customer can visually
see how the system will perform its functions. Hence the Demonstration version will
enable customer to have an idea about the core system.

4.1.3 Design
After the finalization of the system requirements, the design work will be started. The
object-oriented and normalized database will be designed for making the system
extensible and easy to maintain. It will include the object model diagram which shows
the relationship between all modules and classes.

4.1.4 Coding and Quality Assurance

The coding language will be selected used on the customer requirements and
suitability for the system. Normally the dot net frame work will be used for desktop
based applications and PHP for web based solutions. The coding will be according to
the highest standards and we will ensure the quality of the international standards.
The QA (Quality Assurance) team will do test planning and test case generation for
each application to be delivered to the client.

4.1.5 Customer Support

The project will include the customer support which could be on-site, phone or email
as per the client agreement in order to ensure the proper implementation of new
system and solution of any problem which may occur.

4.1.6 User Documentation

The project will accompany with the user documentation, like help, tutorials,
audio/video guides, reference manuals and presentations as per the requirement of
the client.

4.2 ORGANIZATION LAYOUT

Chief Executive
Officer (CEO)

Quality Office
Consultancy Development Support
Assurance Management
4.3 OFFICE EQUIPMENTS AND PERSONNEL
4.3.1 Human Resources
The project should have highly educated and skilled manpower to support its
software development operations. Initially 10 technical staff will be hired which is
likely to grow to over 24 by the beginning of the next year.

Chief Executive Officer:

The key personnel CEO should have M.S. degree from leading university, and
require successfully work on export software projects that will provide overall
technical and business direction for software development activities.

The Chief Software Architect – CSA:

He will be strong background in software design and architecture, with special focus
on Object-Oriented Design and implementation. His role will be streamlining the
software development methodology and life cycle, and software design processes.
Validating object designs and acting as technical consultant for team lead and
developers.

The majority of technical team would have full command on methods, tools and
technology necessary to develop high quality enterprise software systems and would
be capable to generate an idea from scratch, analyze it, form a solution, implement it
and then deploy it.
Staff should be trained and fully equipped with latest technology and advancement.

4.3.2 Office Equipments

As it is an IT based firm so major equipments would be personal computers for
various departments and furniture and fixture.

Location
The suggested location for software house will be on Club Road, which is a
promising commercial area of the city. The Land can be leased for 10 years to save
heavy costs. The second best location is Firdous Market, Rahim Yar Khan which is a
commercial area and based on computers and mobile shops.

Computers and Equipment

There is not much high value machinery required as its human based business. The
computer and equipments cost will include, personal computers, UPS, server,
Network adapters, Network equipment, Internet and Printer etc… The complete detail
will be listed later.

Furniture and Fixture

It will include the computer furniture for individuals on manager level and a computer
lab for the programmers, technicians and support staff. It will also include the Air
Conditioners for rooms, CEO and senior staff furniture, telephone, fax, books and
other materials.

Vehicles
The company will provide a 1000cc car to CEO and 2 800cc cars for CSA and
Marketing Manager. The marketing team will also be provided with two motorbikes
which will be purely used for office purpose.
 5. OPERATIONAL PLAN

This is the plan how the operation would be carried on, the diagram shows the
relationship between Analyst, Tester, Designer and Programmer. Their respective
works has been discussed earlier.

TECHNOLOGY
We will have developers for Dot Net Frame Work, Platform Independent
Programming, C sharp and Java based application programmers. The database will
be chosen according to the system requirement from MySQL to MsSQL and Oracle.
We will have licensed version of Microsoft VISUAL STUDIO 12, MySQL 2007 and
Oracle i8.
 6. FINANCIAL PLAN
Based on certain assumptions, the financial results of the project have been
projected.

6.1 Project Cost

Rupees
Capital Investment Required 30,00,000
Working Capital 5,00,000
Total Investment 35,00,000

6.2 Project Financing

The estimated total cost of the project is and 60% of it will be financed by the
entrepreneur and remaining 40% will be financed by Bank loan.

Rupees
Debt 14,00,000
Equity 21,00,000
Total Investment 35,00,000

6.3 Project Details

The project is based on human capital therefore no intense machinery will be

required. The major cost would be spend on computer and equipments, then
capacity and location.

Location
The suggested location for software house will be on Club Road, which is a
promising commercial area of the city. The Land can be leased for 10 years to save
heavy costs. The second best location is Firdous Market, Rahim Yar Khan which is a
commercial area and based on computers and mobile shops.

Computers and Equipments

Title Units Unit Cost Total Cost

PCs 8 20,000 160,000
Laptop 2 43,000 86,000
Server 1 56,000 56,000
UPS for PCs 11 2,800 30,800
Network Equipments 1 35,000 35,000
Printers 2 9,500 19,000
Software (Windows) 11 3,500 38,500
Software (Antivirus) 11 1,700 18,700
Software (Developing Tools) 9 8,000 72,000
Power Generator 1 45,000 45,000
Misc 20,000

Total 581,000
Furniture and Fixture

Title Units Unit Cost Total Cost

Computer Furniture 9 5,000 45,000
Office Furniture 2 9,000 18,000
Furniture CEO Office 1 15,000 15,000
Split A/Cs 4 28,000 112,000
Telephone Exchange and Phones 1 20,000 20,000
Fax 1 7,500 7,500
Photocopier 1 28,500 28,500
Misc 30,000

Total 276,000

Human Resource

Personnel No. Salary Annual

Technical

Chief Executive Officer 1 60,000 720,000

Chief Software Architect 1 48,000 576,000
Software Architect 2 30,000 720,000
Senior Analyst 1 40,000 480,000
Analyst 1 30,000 360,000
Database Administrator 2 25,000 600,000
Senior Software Engineer 1 30,000 360,000
Software Engineers 2 22,000 528,000
System Administrator 1 20,000 240,000

Total 12 305,000 36,60,000

Non-Technical

Marketing Manager 1 35,000 420,000

Accountant 1 30,000 360,000
Helpers 3 5,000 180,000
Cleaners 1 5,000 60,000

Total 6 75,000 10,20,000

Revenues

The estimated revenues are more than 700,000 Rupees a month as we are going to
target not only the local market but focus will also be on the Exports. We are
spending high costs on qualified personnel to make the quality standards and it will
gain access to international market.
We are estimating a profit of 30% on our investment and the project payback period
will be 4 years.

Projected Income Statement

Year 1 Year 2
000’ 000’
Revenue 8400 10,080
Operating Expense 5520 6624
Depreciations 120 120
Earnings before Interest and Tax 2760 3336
Interest 196 196
Earnings before Tax 2564 3140
Tax Charge - -
Earnings After Tax 2564 3140
References

 Economic Survey
 SBPs Annual Report
 Pakistan Software Export Board
 Federal Bureau of Statistics
 Pakistan Economist
 SMEDA Pre-feasibility Reports
 Various Websites for Guidance